United mulls outsourcing some Hawaii operations

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News,Business

HONOLULU (AP) — United Airlines is considering outsourcing ground operations on Kauai, Maui and the Big Island.

The Honolulu Star-Advertiser (http://bit.ly/OGCeYr) reports the move could potentially lead to the layoff of more than 220 employees in Lihue, Kahului and Kona.

The airline last week told workers at the three Hawaii airports and 12 small mainland airports that it's examining market rates for ground operations work.

The airline says it currently pays the same labor rates in all markets but its major competitors pay rates in line with local markets.

United spokesman Christen David says the difference puts the company us at a competitive disadvantage. He says the company must look for ways to ensure its cost structure is more in line with other airlines.

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Information from: Honolulu Star-Advertiser, http://www.staradvertiser.com

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